Boy, was this a good time for our Irrational Economics Summit or what?
The markets kept tanking right into it. Some of my classmates from Harvard Business School came in as I was warning that the Great Reset is coming now, or by late next year.
We covered it from all angles…
George Friedman on the culmination of geopolitical pressures from dangerous nations like Russia, Saudi Arabia, and Iran, who are suffering from outdated political strategies and falling commodity prices. And the great mercantilist export economies of China and Germany that seem the strongest but are the most vulnerable to a global downturn. He says: “It’s not Germany keeping the euro together, but it’s the euro propping up Germany’s giant export machine.”
Neil Howe showed similar generation cycles to mine, but more from social trends. We’re in the crisis cycle when Millennials come of age — and guess what, they are a lot like the G.I., or what I call the Bob Hope generation. Neil was very informative and entertaining.
Kevin Ashton talked about the Internet of Things. We all have smart phones and internet… and now it’s about hooking zillions of sensors to the internet to make us smarter in ways we can’t understand but will see. That’s the next revolution already in motion. His memorable line: “Technologies are easy to predict, but hard to believe.”
Michael Terpin on why bitcoin could see its biggest rally yet to $25,000-plus by 2022. I actually presented my new more favored scenario where it could get there by late next year after basing in a very bullish pattern around $6,000. It was a great panel on Friday with Terpin, Lou Basenase, me, and Rodney.
Lou Basenase showed his “hype cycle” for new technologies, which comes from the human tendency to overvalue new technologies at first, then undervalue their impact years and decades from now. That happened with the first internet bubble into 2000 and with crypto and bitcoin today… and electric cars.
Then my favorites: Dr. Lacy Hunt and David Stockman. The highlight of the conference was the panel with all three of us. We all showed how the U.S. has filled the pond with unprecedented debt and QE, and now are draining rapidly and thinking everything will be OK…
Not a chance in hell.
Lacy gives a clear history of debt and financial bubbles and how they always end badly… “there will be hell to pay here, and soon!” He gives the only clear view of money velocity and why it is what I call the ultimate “acid test” for economies and countries… and how the U.S. is still the best house in a bad neighborhood.
Stockman showed how unsustainable the present economic trends have been, and will continue to be, despite the temporary surge from the tax cuts. His line: “Trump has as much chance of success with his Make America Great Again programs as pigs flying!” You won’t find a more impassioned speaker in this realm than him.
Adam O’Dell showed how his short-term indicators are pointing towards the chance of higher risks ahead and showed us how to beat the human tendencies that often steer us to be dead wrong when investing.
J.C. Parets, editor of Breakout Profits, did a great job of pointing out the chart patterns that suggest lower lows ahead despite the sharp correction since early October. I even learned a few new things from his presentation.
And I showed the evolution of Dent Research and how we have created one breakthrough after the next over the last 30 years in explaining economic phenomenon that economists still have no clue of and why my biggest and most recent cycle — the 90-year Bubble Buster — hits in this time frame and clearly points to the greatest crash since late 1929 to 1932… late 2019 to 2022 at the latest to be more precise.
In a nutshell… get ready to hunker down, hedge your portfolios, get on proven systems that can do well in up-and-down markets — and the down markets are typically more profitable if the system is good as they occur twice as fast as bull markets…
Especially in bubbles that typically see the first crash down 42% in just 2.6 months on average.
Stick with us and our merry band of contrarians during this Great Reset for the Sale of a Lifetime ahead!
Follow me on Twitter @HARRYDENTJR